On Running
ActiveOverview
On Holding AG is a Swiss company that designs and markets athletic shoes, performance sportswear, and running shoes featuring proprietary CloudTec cushioning technology. It holds significant market share in Switzerland (40%) and Germany (10%), with 6.6% of the U.S. performance running shoe category and 2% globally as of 2024. The brand has expanded from running footwear to broader sportswear categories including apparel and accessories, positioning itself as a premium player with gross margins around 60%.23
History
On was founded in 2010 in Zurich, Switzerland, by former Ironman champion Olivier Bernhard, along with David Allemann and Caspar Coppetti, to revolutionize running sensation through CloudTec technology. Key early milestones include the 2012 release of the Cloudracer and the 2014 Cloud model, which drove growth across Europe and into the U.S. The company expanded into apparel in 2016, launched the On Athletics Club in 2020, and recently rebranded by dropping 'Running' from its name while attracting investment from Roger Federer.231
Product Lines
| Product Line | Positioning | Price Range |
|---|---|---|
| Cloudracer (performance racing shoe) | high-speed competition running | $150 - $180 |
| Cloudsurfer (daily training shoe) | versatile road running | $150 - $170 |
| Cloudrunner (stability shoe) | cushioned support for longer runs | $150 - $170 |
| Cloud X (cross-training shoe) | multi-sport versatility | $130 - $150 |
| Cloudventure (trail shoe) | off-road endurance | $150 - $170 |
| Cloudflyer (max cushion shoe) | premium daily cushioning | $160 - $180 |
Manufacturing
Products are designed in Switzerland with a focus on proprietary technologies like CloudTec, Speedboard, and Helion foam. Manufacturing is outsourced, primarily to Asia, consistent with industry standards for premium sportswear brands.23
Notable Products
- Cloudracer - Performance racing shoe released in 2012, favored by professionals like Nicola Spirig.
- Cloud - Flagship daily trainer launched in 2014, central to the brand's cushioning technology.
- Cloudsurfer - Versatile road running shoe that expanded the product lineup.
- Cloud X - Cross-training shoe marketed for multiple activities.
- Cloudventure - Trail running shoe for off-road use.
Reputation
On is praised by runners and professionals for its innovative CloudTec cushioning, which provides responsive landings and efficient strides, earning organic growth through athlete endorsements and race performances. The brand's premium positioning and high margins reflect strong product quality, though some note higher pricing compared to competitors. Expansion into apparel and lifestyle has broadened appeal but drawn minor criticism for diluting its running heritage.231
Sources (8)
- https://backpackeroutdoors.com/blogs/on-running-reviews/the-evolution-of-on-embracing-a-new-era
- https://en.wikipedia.org/wiki/On_(company)
- https://quartr.com/insights/edge/running-on-clouds-the-story-of-on
- https://www.endclothing.com/us/features/brand-profile-on
- https://www.marcuskraft.com/projects/on-running
- https://www.on.com/en-us/explore/about-on
- https://www.youtube.com/shorts/ecn1tF_niFA
- https://www.itsnicethat.com/features/on-behind-the-scenes-product-design-sponsored-content-110924